Record Detail Back
International Journal of Law and Management: Reinforcing policy and legal framework for Islamic insurance in Islamic finance: towards achieving Saudi Arabia Vision 2030
- Share to:
Abstract
Purpose – Conventional insurance creates a gap in the financial system across the world that manifests
from the global financial and economic crisis. There is an increasing demand for insurance schemes that will
bridge the gap of financial and economic crisis globally. More recently, there is an advocacy in Saudi Arabia
for achieving Vision 2030 by various facets of human endeavours such as strengthening financial markets
and boasting economic development. The purpose of this paper is to deeply explore policy and reinforcement
of the legal framework of Islamic insurance as essential bedrocks in Islamic finance that are Shari’ah
compliant to achieve Saudi Vision 2030 for overall sustainability of all spheres of human endeavours in the
country.
Design/methodology/approach – Content analysis and systematic literature review are used as
methodological approaches in this paper. There are various sources of accessing secondary data used in this
study such as online peer review, journals and library-based sources. Through the exploration of various
secondary data, five major themes were identified in this study, namely, policy, legal framework, Islamic
insurance, Islamic finance and Saudi Vision 2030. Analysis of various themes were done systematically in this
paper. The methodology provides theoretical and practical foundations for reinforcing policy and legal
framework for Islamic insurance, specifically in Islamic finance to achieve Vision 2030 in Saudi Arabia. It is
the policy and legal framework that can provide necessary dynamics for strengthening Islamic insurance in
particular and Islamic finance in general towards attaining sustainable Vision 2030 in the country.
Findings – The paper demonstrated that policy period is explicitly associated with Islamic insurance,
whereby Takaful insurance is regarded as policyholder rather than shareholder-oriented. Similarly, it is
established that there is need to specifically mention the policy period and the nature of contract in Islamic
insurance should not be limited to only mutual cooperation among the participants in connection with the
losses but it should capture element of sharing income generated from investment between insurer and
policyholders using predetermined ratio for such as provided with theoretical legal framework (Shari’ah) in
connection with Islamic insurance model as an integral part of Islamic finance.
Research limitations/implications – It will depart completely from conventional insurance where
borrowing of funds and investment are put at fixed interest (Riba), uncertainty (Gharar) and speculative ideas
(Maisir). Avoidance of different elements ascribed with conventional insurance would enable Saudi Arabia to
strengthen financial system and boast economic development with an emphasis on an effective policy and
efficient legal framework towards attaining Vision 2030 in the country.
Practical implications – The methodology provides theoretical and practical foundations for reinforcing
policy and legal framework for Islamic insurance, specifically in Islamic finance to achieve Vision 2030 in
Saudi Arabia.
Social implications – Conventional insurance creates a gap in financial system across the world that
manifests from the global financial and economic crisis. There is an increasing demand for insurance scheme
that will bridge the gap of financial and economic crisis globally. More recently, there is an advocacy in Saudi
Arabia for achieving Vision 2030 by various facets of human endeavours such as strengthening financial
market and boasting economic development.
Originality/value – With this emphasis, it will depart completely from conventional insurance where
borrowing of funds and investment are put at fixed interest (Riba), uncertainty (Gharar) and speculative ideas
(Maisir). Avoidance of different elements ascribed with conventional insurance would enable Saudi Arabia to
strengthen financial system and boast economic development with an emphasis on an effective policy and
efficient legal framework towards attaining Vision 2030 in the country.
Yusuff Jelili Amuda and Sarah Alabdulrahman - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2023
ENGLAND
JURNAL ILMU HUKUM
LOADING LIST...
LOADING LIST...
APA Citation
Yusuff Jelili Amuda and Sarah Alabdulrahman. (2023).International Journal of Law and Management:
Reinforcing policy and legal
framework for Islamic
insurance in Islamic finance:
towards achieving Saudi Arabia
Vision 2030.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd